British Banks Step Back From Libor Role

By

David Enrich

Updated Sept. 25, 2012 2:25 p.m. ET

LONDON—The British Bankers' Association is preparing to give up responsibility for the London interbank offered rate, or Libor, the scandal-plagued benchmark interest rate that the group once called "the world's most important number."

The council of the BBA, a private trade association, voted earlier this month to give up management of Libor, according to people familiar with the matter. The move clears the way for what is likely to be the biggest change in Libor's 26-year history, and introduces the...